Ample Liquidity, but No Pick-Up in Investment

in Investment The financial markets were marked by an abundance of liquidity throughout 1997-98, even though funds deployed by banks in non-food advances and commercial investments picked up in the latter half of the year. So did disbursements by the term-financing institutions. The injection of liquidity seems, however, to be getting absorbed in higher inventories and, on the supply side, in substitution of capital market funds, Effective investment in the economy, in manufacturing and infrastructure in particular, does not appear to be picking up.